RicAguiar
Global building materials producer, Heidelberg Materials AG (OTCPK:HDLMY) is up 91.69% (YTD) ahead of its half-year results release on 31st July 2025. I will explain why this company is a Hold due to falling
Heidelberg Materials: New Frontier In Low-Carbon Product Manufacture (Hold)
Summary
- I rate Heidelberg Materials AG a Hold, as falling interest rates should boost construction demand, but the stock is fairly valued and dividend yield lags peers.
- The company is well-positioned to benefit from the global energy transition, highlighted by its pioneering carbon capture facility and focus on sustainable products.
- Despite revenue growth in Europe and strong sustainability initiatives, I expect Q1 2025 results to show a decline in operational performance and rising costs.
- I will reassess my position after H1 2025 results, watching for dividend improvements and operational progress at the new CCS facility.
I have more than five years experience in the financial industry. I focus mostly in the commodities, foreign exchange and cryptocurrencies. I also write on general issues like equity research, economics and geopolitics.Fellow contributor Crispus Nyaga is my colleague.
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